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Will Top-Line Growth Benefit Motorola (MSI) Q4 Earnings?
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Motorola Solutions, Inc. (MSI - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 9, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 10.3%. It pulled off a trailing four-quarter earnings surprise of 9.5%, on average.
The Chicago, IL-based company is expected to have recorded year-over-year higher revenues on the back of growth in both segments — Products and Systems Integration, and Services and Software. It benefits from the increasing demand for its mission-critical technologies in North America and globally.
Factors at Play
During the quarter, Motorola secured a prime contract from SJ AB to provide VB400 body-worn cameras for the safety and security of employees and passengers across the rail network of Sweden. The cameras will offer the requisite wherewithal to the government-owned passenger train operator that boasts 1,500 departures across 400 stations each day to ensure better passenger and employee security against any untoward incident. Motorola will also offer its VideoManager evidence management software to seamlessly upload and manage the recorded video as part of SJ AB’s everyday workflows.
In the fourth quarter, Motorola deployed and expanded the reach of Terrestrial Trunked Radio base stations across Romania. This will strengthen the mission-critical communications infrastructure of the European country’s public safety organizations. In addition, the Yonkers Police Department, NY, decided to capitalize on Motorola’s video security and access control solutions, command center software and voice and data communications offerings to ensure public safety in the city. The integrated technology ecosystem will enable it to monitor crime rates on a real-time basis, thereby prioritizing greater safety among communities.
Riding on such state-of-the-art products, Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. These systems drive the demand for additional device sales and promote software upgrades and infrastructure expansion. The comprehensive suite of services ensures continuity and reduces risks related to critical communications operations.
The Zacks Consensus Estimate for the Products and Systems Integration segment’s revenues is pegged at $1,524 million. The figure indicates a rise from $1,510 million recorded in the year-ago quarter.
The consensus estimate for Services and Software revenues is $800 million, which indicates growth from the year-ago figure of $763 million. The performance is likely to have been driven by command center software and services along with growth in land mobile radio services.
For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $2,329 million, which indicates growth of 2.5% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at $2.74, which suggests a decrease from $2.86 recorded in the prior-year quarter owing to high operating expenses.
Q4 Developments
During the quarter, Motorola augmented its command center solutions portfolio with the acquisition of 911 Datamaster, Inc. for an undisclosed amount. The buyout is likely to reinforce its position as a leading provider of mission-critical communication products and services worldwide. The acquisition will facilitate Motorola to boost its organizational workflows as it aims to migrate to NG9-1-1 technologies. This, in turn, will help to improve its technical capabilities to provide interactive text messaging and policy-based routing using location for better emergency support services.
Earnings Whispers
Our proven model does not predict an earnings beat for Motorola in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $2.74. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Motorola Solutions, Inc. Price, Consensus and EPS Surprise
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for Akamai Technologies, Inc. (AKAM - Free Report) is +1.65% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Feb 15.
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +0.55% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 16.
Image: Bigstock
Will Top-Line Growth Benefit Motorola (MSI) Q4 Earnings?
Motorola Solutions, Inc. (MSI - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 9, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 10.3%. It pulled off a trailing four-quarter earnings surprise of 9.5%, on average.
The Chicago, IL-based company is expected to have recorded year-over-year higher revenues on the back of growth in both segments — Products and Systems Integration, and Services and Software. It benefits from the increasing demand for its mission-critical technologies in North America and globally.
Factors at Play
During the quarter, Motorola secured a prime contract from SJ AB to provide VB400 body-worn cameras for the safety and security of employees and passengers across the rail network of Sweden. The cameras will offer the requisite wherewithal to the government-owned passenger train operator that boasts 1,500 departures across 400 stations each day to ensure better passenger and employee security against any untoward incident. Motorola will also offer its VideoManager evidence management software to seamlessly upload and manage the recorded video as part of SJ AB’s everyday workflows.
In the fourth quarter, Motorola deployed and expanded the reach of Terrestrial Trunked Radio base stations across Romania. This will strengthen the mission-critical communications infrastructure of the European country’s public safety organizations. In addition, the Yonkers Police Department, NY, decided to capitalize on Motorola’s video security and access control solutions, command center software and voice and data communications offerings to ensure public safety in the city. The integrated technology ecosystem will enable it to monitor crime rates on a real-time basis, thereby prioritizing greater safety among communities.
Riding on such state-of-the-art products, Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. These systems drive the demand for additional device sales and promote software upgrades and infrastructure expansion. The comprehensive suite of services ensures continuity and reduces risks related to critical communications operations.
The Zacks Consensus Estimate for the Products and Systems Integration segment’s revenues is pegged at $1,524 million. The figure indicates a rise from $1,510 million recorded in the year-ago quarter.
The consensus estimate for Services and Software revenues is $800 million, which indicates growth from the year-ago figure of $763 million. The performance is likely to have been driven by command center software and services along with growth in land mobile radio services.
For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $2,329 million, which indicates growth of 2.5% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at $2.74, which suggests a decrease from $2.86 recorded in the prior-year quarter owing to high operating expenses.
Q4 Developments
During the quarter, Motorola augmented its command center solutions portfolio with the acquisition of 911 Datamaster, Inc. for an undisclosed amount. The buyout is likely to reinforce its position as a leading provider of mission-critical communication products and services worldwide. The acquisition will facilitate Motorola to boost its organizational workflows as it aims to migrate to NG9-1-1 technologies. This, in turn, will help to improve its technical capabilities to provide interactive text messaging and policy-based routing using location for better emergency support services.
Earnings Whispers
Our proven model does not predict an earnings beat for Motorola in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $2.74. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Motorola Solutions, Inc. Price, Consensus and EPS Surprise
Motorola Solutions, Inc. price-consensus-eps-surprise-chart | Motorola Solutions, Inc. Quote
Zacks Rank: Motorola has a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Arista Networks, Inc. (ANET - Free Report) is set to release quarterly numbers on Feb 14. It has an Earnings ESP of +0.95% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Akamai Technologies, Inc. (AKAM - Free Report) is +1.65% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Feb 15.
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +0.55% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 16.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.